@Dan H. answer is detailed and correct.The cost to convert your garage to ADU is not equal to the comparable sales which is what is used for an appraisal.If you want to put your Mom on site to help her and the goal is not for financial reasons it will make sense.

What made my investor interested in this deal was firstly the size, being just under 1500 sqft and being a complete shell minus some framing allowed him to be able to convert this once 3 bed into a nice 4 bed home.

Does anyone have experience in converting it to STR/AirBnb? 

You can vacate your primary house and convert it into a rental/investment property after 12 months.

What research have you done to convert it into an STR? 

Even though 2 of my San Diego STRs are in mission beach where quota was hit and many STRs had to convert to not STR (MTR, LTR, sell, etc), my ADR is down compared to past results.  

He rightfully is thinking that a. you can't spend equity, it has to be converted to money to be useful b.

If they can put together a presentation/program to convert people, that takes time/effort/knowledge too.

Purchase price: $168,000 Cash invested: $28,000 Sale price: $245,000 Converted primary residence into buy-and hold in 2020 and sold in 2024 when tenant left and partners needed to go their separate ways What made you interested in investing in this type of deal?

Hello BP,I'm looking to convert my detached garage into a 2 Bed 1 Bath ADU in the Arlington, TX area.